Group life insurance is a commonly used as an employee benefit. Similar to individual life insurance, group life insurance provides a sum of money when someone passes away. If an employee dies, that lump sum will go to the employee’s beneficiary. It can be paid as a pension, but it is dependent on how the employer has set up the coverage.
Employers who have invested in group life insurance will have to explain to their employees why they chose this particular scheme to include in their benefits package. If you are one of those employers, here’s a few ways to talk to your employees about group life insurance.
Explain The Difference
Life insurance and group insurance may sound similar to your employees. As such, explaining what the key differences are will help them to understand what the benefits are. Both life insurance and group insurance will pay a lump sum or pension benefit to your beneficiaries after you have passed away.
Another similarity is that employees are covered, regardless of the cause of death. If they are not at work but are employed by the company, then they will be covered. One difference is that you, the employer pays the premium and not your employee.
Be Transparent About What Is Included
Understandably, one of the first questions your employees will most likely ask when they hear about group life insurance is ‘Why is Group Life Insurance Important?’ As the employer, it is essential to be clear about it from the start.
It includes being transparent about how it works, what is covered and how long it is in effect. For instance, group life insurance is connected to the individual’s employment at the company. When they leave the company, the coverage ends. It will also stop once the individual has reached the maximum age, either the State Pension or 75, whichever you have chosen.
Details such as these should be highlighted to employees beforehand to ensure they are well aware of what is included.
Take Time To Discuss It
Some employee benefits require a little extra time to explain – group life insurance is one of them. Taking your time to explain what is included in the chosen policy will be appreciated by your employees. Provide them with additional resources to help further explain points made or offering to spend some time to go further in-depth with them. In doing so, it will help to ensure there is no confusion about policies.
Employee benefits are a great way to show your team how valued they are. A reported 75% of employees revealed they would likely stay with a company due to the employee benefits package on offer.
Providing employees with life coverage through a group life insurance scheme is one of the many excellent ways you, the employer, can show a duty of care to your team. By being thorough with your explanation on the topic, you can ensure that your employees understand what group life insurance is and what the benefits are. It will provide them with peace of mind that their loved ones will be covered should anything happen to them.